The rise in first-time buyers (FTB) entering the housing arena has once again enforced the need to educate people in the science of buying a home. Here Rita Tinney, Keats Sales and Lettings Director shares some valuable advice for FTB’s.
Managing personal finances has been a part of the curriculum for 16 to 18-year olds for some time, but purchasing a home isn’t part of the module and certainly should be included.
Anyone intending to buy needs to undertake a great deal of research before they dip their toes into the water and financing the purchase is just a small part of the process. A good place to start is to read the Government guidance published on 7th May for both buyers and sellers which can be found online HERE.
Consideration needs to be given to exactly what you NEED as opposed to what you may feel you WANT to buy. Recent statistics show that the average homeowner moves once in every 15 years as opposed to once in every 2 to 3 years, as was the case in the last quarter of 20th century and this needs to be considered when seeking parental advice.
While parents are a good source of knowledge and experience, their buying culture may have been very different to the current model and the ‘it will do for now..just get your foot on the ladder..you can always move again in a few years’ attitude is no longer the way forwards.
Moving costs are now substantially higher; mortgage arrangement fees, surveyors fees, conveyancing costs and stamp duty land tax rates have all increased since the property slump of 2007 to 2010 and the continued lack of volume in the market continues these increases.
Combine that with slow growth in house prices and the process of moving home has become almost unaffordable and certainly uneconomic if undertaken within a short recurring timeframe.
So, make sure your new home is ‘durable’ i.e. it will see you through your future plans and still be suitable should your personal circumstances change. For the first time in a very long while, the UK purchaser is buying a HOME rather than mere bricks and mortar!
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